In May 2009 the Spanish government launched its own version of the Spanish scrappage scheme called Plan 2000E.  Here you can learn about its main features and how they might effect you if you are in the market for a new car.

The main points of the scheme

• 1.  The objective of Plan 2000E is to remove older, more polluting vehicles from Spain’s roads and to boost car sales.

• 2.  Individuals or small businesses trading in a car at least ten years old or with more than 250,000 kilometers on the clock can qualify for up to €2,000 towards the cost of a new car or van.

• 3.  The subsidised car or van must cost less than 30.000€ and must meet certain CO2 emissions criteria.  The old car must be physically scrapped and certified as such. 

• 4.  The subsidy can be applied to second hand vehicle purchases if the scrapped car is at least 12 years old and the second hand car less than 5 years old.

• 5.  The subsidy cannot be claimed on top of the subsidy available under a previous government initiative called Plan VIVE.  This scheme began in 2008 covering purchases of low-emission cars on credit upon scrappage of a car at least 15 years old.

• 6.  The subsidy is provided by the government (€500), participating autonomous communities* (€500) and the car’s manufacturer or importer (€1.000 but only for new vehicle purchases).

(* Madrid and La Rioja are not participating in the scheme but car buyers can still claim the other subisidies in those communities)

Progress of Plan 2000E

As in the UK the Plan has been hailed as a success by the government and the motor industry.   260,000 vehicles have been scrapped and new purchases subsidised in the 7 months of the scheme’s operation.  Without it (and VIVE) new car sales in Spain during 2009, finally down 18% to their lowest level for fifteen years, would have been even worse.  Towards the end of the year new car sales were actually rising year on year.

In fact so many cars were purchased using the Plan that the scheme, originally designed to cover up to 200,000 transactions, was extended in late 2009 with the government providing another €100m of funding.  The government has also made some changes to make it more attractive with the subisdy being paid earlier and the administration made simpler.  Some concern remains about what happens once the scheme ends and the industry is hit by a rise in VAT planned for later in the year.  Will the Spanish car industry be back to square one?